At the beginning of the simulation, your team faces an unusual business situation – all companies and products are ident

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At the beginning of the simulation, your team faces an unusualbusiness situation – all companies and products are identical toeach other. In the real world, this situation rarely exists, ifever occurs. The closest analog might be a highly regulatedindustry. Looking into the future, the simulated industry willrapidly differentiate. Nothing you can do will stop it. Given time,the industry will evolve into a state where competitors occupydefendable strategic positions. There are two important questions.“How long will the process take?” “Will two or more competitorsattempt to occupy the same position?” Let’s use an analogy. Picturea flat landscape. Now imagine several hills placed on thelandscape. Each of the hills represents a strategy. Your successdepends upon how quickly you can identify a hill, and how high youcan climb it. Your hope is that you will choose a hill that nobodyelse picks and that you can defend it against competitors.Complicating this is the fact that some hills are more attractivethan others. Further, the more companies try to climb a particularhill, the more difficult it is for each of them to successfullyclimb it.
Are there methods and techniques that will help you identify andselect these strategic hills? Yes, the general topic is widelydiscussed. They are the most commonly referenced, Michael Porter’s“Generic Strategies”. With this as background, explain genericstrategies. Select or develop a strategy you would like your teamto pursue. Prepare and post an argument for your strategy. Theargument should address these issues:
1. Segments. Which segments matter to you? How many shares ofthose segments must you achieve to be an “average competitor” inthe overall industry? For example, if you choose to play only inTraditional and Low End, you would have to command a higher shareof those segments to achieve “average industry sales”.
2. Profit potential.
3. The speed at which you can create a defendableposition. For example, new products typically take two years tobring to market. Significant productivity improvements could takeseveral years.
4. Priorities. Which products are most important to you? Whichare least important?